Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aromatherapy items. Nicole uses a perpetual inventory system and is starting to realize all of the work that is created when inventory is involved in a business. The following transactions were selected from among those completed by NGS in August. Aug. 2 Sold a bundle of spa services with a merchandise basket. when sold separately, the spa service part of the bundle sells for $480 and the merchandise basket normally sells for $180. Together, the bundle was sold to Val Amy for cash at a selling price of $45e (total). Val booked a spa treatment for August 1e, and she took the basket of goods with her. The goods had cost NGS $8e. Aug. 3 Sold 5 identical items of merchandise to Cosmetics R US on account at a selling price of $500 (total); terms n/30. The goods cost NGS $48e. Aug. 6 Cosmetics R Us returned one of the five items purchased on August 3. The item could still be sold by NGS in the future and credit was given to the customer. Aug. 10 Val Amy used one of the three spa treatments she had purchased as part of the bundle sold to her on August 2. Aug. 20 Sold two at-home spa kits to Meghan Witzel for $300 cash. The goods cost NGS $96. Aug. 22 Cosmetics R Us paid its remaining account balance in full. equired: 1. Prepare journal entries for each transaction. No additional sales returns are expected. (If no entry is requlre transaction/event, select "No Journal Entry Required" In the first account fleld.) View transaction list
Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aromatherapy items. Nicole uses a perpetual inventory system and is starting to realize all of the work that is created when inventory is involved in a business. The following transactions were selected from among those completed by NGS in August. Aug. 2 Sold a bundle of spa services with a merchandise basket. when sold separately, the spa service part of the bundle sells for $480 and the merchandise basket normally sells for $180. Together, the bundle was sold to Val Amy for cash at a selling price of $45e (total). Val booked a spa treatment for August 1e, and she took the basket of goods with her. The goods had cost NGS $8e. Aug. 3 Sold 5 identical items of merchandise to Cosmetics R US on account at a selling price of $500 (total); terms n/30. The goods cost NGS $48e. Aug. 6 Cosmetics R Us returned one of the five items purchased on August 3. The item could still be sold by NGS in the future and credit was given to the customer. Aug. 10 Val Amy used one of the three spa treatments she had purchased as part of the bundle sold to her on August 2. Aug. 20 Sold two at-home spa kits to Meghan Witzel for $300 cash. The goods cost NGS $96. Aug. 22 Cosmetics R Us paid its remaining account balance in full. equired: 1. Prepare journal entries for each transaction. No additional sales returns are expected. (If no entry is requlre transaction/event, select "No Journal Entry Required" In the first account fleld.) View transaction list
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Requlred Information
[The following information applies to the questions displayed below]
Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by
selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and
aromatherapy items. Nicole uses a perpetual inventory system and is starting to realize all of the
work that is created when inventory is involved in a business. The following transactions were
selected from among those completed by NGS in August.
Aug. 2 Sold a bundle of spa services with a merchandise basket. When sold separately, the spa
service part of the bundle sells for $480 and the merchandise basket normally sells for
$109. Together, the bundle was sold to Val Amy for cash at a selling price of $450
(total). Val booked a spa treatment for August 10, and she took the basket of goods with
her. The goods had cost NGS $80.
Aug. 3 Sold5 identical items of merchandise to Cosmetics R Us on account at a selling price of
$500 (total); terms n/30. The goods cost NGS $400.
Aug. 6 Cosmetics R Us returned one of the five items purchased on August 3. The item could still1
be sold by NGS in the future and credit was given to the customer.
Aug.10 Val Amy used one of the three spa treatments she had purchased as part of the bundle sold
to her on August 2.
Aug. 20 Sold two at-home spa kits to Meghan witzel for $300 cash. The goods cost NGS $96.
Aug.22 Cosmetics R Us paid its remaining account balance in full.
Requlred:
1. Prepare journal entries for each transaction. No additional sales returns are expected. (If no entry Is requlred
transaction/event, select "No Journal Entry Required" in the first account fleld.)
View transaction list
Journal entry worksheet
1 2 3 4 5 6 7 8 9 10
Record the receipt of payment in full from NGS.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Aug 02
Record entry
Clear entry
View general jourmal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7100c50b-ddff-47ff-95bb-897dc45c5954%2F32a541f6-8186-4db0-998d-58b7b14272b9%2Fggak48_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Requlred Information
[The following information applies to the questions displayed below]
Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by
selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and
aromatherapy items. Nicole uses a perpetual inventory system and is starting to realize all of the
work that is created when inventory is involved in a business. The following transactions were
selected from among those completed by NGS in August.
Aug. 2 Sold a bundle of spa services with a merchandise basket. When sold separately, the spa
service part of the bundle sells for $480 and the merchandise basket normally sells for
$109. Together, the bundle was sold to Val Amy for cash at a selling price of $450
(total). Val booked a spa treatment for August 10, and she took the basket of goods with
her. The goods had cost NGS $80.
Aug. 3 Sold5 identical items of merchandise to Cosmetics R Us on account at a selling price of
$500 (total); terms n/30. The goods cost NGS $400.
Aug. 6 Cosmetics R Us returned one of the five items purchased on August 3. The item could still1
be sold by NGS in the future and credit was given to the customer.
Aug.10 Val Amy used one of the three spa treatments she had purchased as part of the bundle sold
to her on August 2.
Aug. 20 Sold two at-home spa kits to Meghan witzel for $300 cash. The goods cost NGS $96.
Aug.22 Cosmetics R Us paid its remaining account balance in full.
Requlred:
1. Prepare journal entries for each transaction. No additional sales returns are expected. (If no entry Is requlred
transaction/event, select "No Journal Entry Required" in the first account fleld.)
View transaction list
Journal entry worksheet
1 2 3 4 5 6 7 8 9 10
Record the receipt of payment in full from NGS.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Aug 02
Record entry
Clear entry
View general jourmal
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